Goldman Sachs projects that the Hang Seng China Enterprises Index, which is comprised of Chinese companies listed in Hong Kong, will jump 19% by the end of 2014, reports Laura He for MarketWatch.

“Chinese equities are about flat, year to date, have underperformed for much of the last several years,” Goldman’s analyst Noah Weisberger said in the report.

Weisberger added that Asia-focused funds are “significantly underweight” China, which “further suggests to us that very little ‘China upside’ has been priced.”

Additionally, Goldman points out that China’s political and economic reforms will help growth in China. The money manager estimates the Chinese economy will expand 7.8% in 2014, compared to this year’s expected growth of 7.7%. [November Reign for China ETFs]

However, the bank warned against further tightening of financial conditions in China.